In a recent virtual training, I asked participants to submit their top questions about raising funding from investors. Below is one of the most commonly asked questions.
How can I get funded without giving up too much of my business?
Many business owners think that if they raise money from investors, they will have to give up a big chunk of ownership and maybe even control of their company.
This is a myth! It is absolutely possible to raise money from investors without giving up any ownership at all or giving up an ownership percentage that you feel comfortable with.
The reason this is possible is that the return on the investment you offer does not have to be tied to ownership of your company. If the only way an investor can ever get any return is via the sale of your company, then yes, investors will want as big a chunk of ownership as possible. But there are lots of other ways for investors to get paid.
The key is to carefully design your investment offering so that it fits with your goals, values, and plans. If you need help designing your offering, please sign up for a complementary financing strategy session.